Sometimes, it can feel like a waste of money, that you’re spending part of your monthly budget on the small chance something terrible will happen and you’ll have to file a claim.
It shouldn’t feel like that, mostly because it’s simply better to be prepared than not. Also, you shouldn’t begrudgingly spend money. If it feels that way, it might be that you feel that you’re spending too much on it.
Here are a few ways to save money on property-based insurance to make it more affordable.
One of your best bets – for your peace of mind as much as your insurers – is to improve security and safety measures within your property. These are more appropriate for landlords and homeowners than renters, but, as a renter, you could ask your landlord about these measures.
Also – yes – these are an investment. However, you are investing, spending, money to save money. It’ll depend on your financial situation as to whether you can afford to implement these changes or how you’ll structure them.
Let’s begin with your locks.
These are your first line of defense. Often, they receive the initial attention when the topic of home security is raised, even if it’s only a glance.
There is a three and a five lever mortice deadlock, with the latter being most secure as it’s harder to duplicate a key.
Multi-locking door systems tend to be found on newer door models and they lock at different points with the turn of a key, offering a high level of security. Smart locks are new to market.
It’s important to find those which are insurance-approved.
These will allow the homeowner or renter to operate their door keylessly – futuristic! – but, also, track when the door has been opened and closed, which can be reassuring for when you’re away from home too as you can know what’s going on with your front door.
CCTV is another option. You should position them where they can be seen. Having cameras visible causes them to act as a deterrent. You don’t want the CCTV to catch footage of them breaking into your property.
The insurance industry has always been slow to adapt to new technology. As such, most firms are quite traditional. It’s very person-oriented, for starters.
This isn’t necessarily a downside: they are knowledgeable and they’ll be exceptionally good with customers, meaning that your experience as a customer will be high quality.
However, their firms will need to pay them a salary and provide them a working space, if not tools, as well as cover other expenses. This creates a substantial overhead. As such, policy prices will reflect this.
In recent times, insurtech start-ups have begun to pop up. They’ve embraced new developments in AI technology to streamline the insurance process. They have an AI who’s been taught all about claims and how to process them via historical data – reports, images, figures.
Customers can receive input all their information and answer questions and the quote will be adjusted for specifics like renters insurance New York, for instance.
Additionally, claims can be processed immediately once they’re filed and customers can receive payment as quickly. AI is also utilised in chatbots, enabling a similar sort of responsiveness as claims. All this leads to less of an overhead. They can price the policies more affordably while still offering a high-quality service.
Savings can be made here. With the extra cash maybe you could go see historic homes and think about how they were traditionally insured and about how far things have come.
You can also change policies themselves to make them more affordable.
Insuring what you have is an important first step. You will likely have expensive devices which you will want to ensure you have protection for. For certain things which have serious value – say you have an expensive home studio which totals upwards of tens-of-thousands of dollars, because you opted not to build cheaply, and it’s an important source of income now and something you’re investing in for the future – you can take out a separate policy to account that.
However, certain things will have a warranty. New cell phones, new games consoles, new appliances – all these will have warranties which offer as much value as insurance, which means you can afford to not insurance them via your homeowners or renters insurance, lowering your premium.
Secondly, don’t auto renew your insurance and try to avoid paying monthly. It’s always best to shop around as things can change, and you might need to adapt your policies to your new situation. Paying monthly, if you take a policy out with certain insurers, could end up being more expensive. If You can afford to pay in full from the beginning, you should.